Nokia partners with Google to build a cloud-based 5G network
On Thursday, Nokia partnered with Alphabet’s Google Cloud unit to build a 5G core network infrastructure and enable business customers to offer services such as smart retail and automated manufacturing.
Cloud computing units of large technology companies such as Microsoft and Amazon They are also teaming up with telecom providers ahead of the rollout of 5G infrastructure to grab a stake in new business that the new technology could enable.
While Nokia will bring its expertise in 5G, Google Cloud will serve as a platform to launch applications and help customers create an ecosystem of services.
“We will start to see some of these things in the live environment later this year,” Amol Phadke, CEO of Google cloud he told Reuters.
He added that the schedule for the availability of services would depend on the telecommunications operators.
In October last year, Nokia CEO Pekka Lundmark reviewed the 5G strategy of the Finnish company. Announcing a new strategy under which the company will have four business groups, Lundmark said Nokia “would do whatever it takes” to take the lead in 5G, where it lags behind its Swedish rival. Ericsson and Chinese group Huawei.
“We expect to stabilize our financial performance in 2021 and offer a progressive improvement towards our long-term goal after that,” Lundmark said in a statement.
The company also lowered its 2020 operating margin forecast to 9 percent from 9.5 percent and for 2021 it expects an operating margin of 7 to 10 percent.
JP Morgan analysts said higher research and development spending is likely to drive margins below consensus expectations of 10.9 percent by 2021. “Nokia is likely to find a challenge in increasing operating margins due to to its relatively low market share, Liberum analysts said in a note.